Sunday, January 29, 2023

Samsung SDI and Stellantis have reached an agreement to collaborate on electric vehicle batteries.

A person familiar with the situation said on Tuesday that South Korean battery giant Samsung SDI Co Ltd (006400. KS) and global automaker Stellantis NV (STLA.MI) had agreed to jointly produce electric vehicle (EV) batteries for the North American market.

Samsung SDI, a subsidiary of Samsung Electronics (005930. KS), already has EV battery operations in South Korea, China, and Hungary, supplying customers such as BMW (BMWG.DE) and Ford Motor Company (F.N).

“The two companies (Samsung SDI and Stellantis) have struck an MOU (memorandum of understanding) to produce EV batteries for North America,” the person with knowledge of the matter told Reuters. The source spoke of the condition of anonymity because of the sensitivity of the matter.

The location of the battery joint venture is being considered, according to the source, and will be announced later. Samsung SDI may establish a battery plant in the United States, which cited a business source. find out more

According to industry sources, the two companies want to create a facility in the United States, according to the Yonhap news agency in South Korea.

On Monday, Stellantis announced a preliminary agreement with LG Energy Solution (LGES), a South Korean battery manufacturer, to create battery cells and modules for North America. According to a company source, Samsung SDI may develop battery manufacturing in the United States.

As of 0300 GMT, Samsung SDI shares were up 2.6 percent, compared to a 0.6 percent advance in the KOSPI (.KS11) benchmark index.

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